Friday 20th January 2012

Dear Reader,

One last missive before the year of the bunny ends.

HKEx's yuan-denominated gaffes
Yesterday's comments by HKEx's CEO indicate a fundamental misconception driving its obsessive attempts to price its products in a currency which is not freely convertible. (20-Jan-2012)

Hong Kong's electricity tax
The Government and the power companies are playing politics with the tariff, tilting it to tax larger residential consumers in order to subsidize the tariff for smaller ones. We call for a single flat-rate residential tariff and for it to be brought into line with the commercial tariff. Why should people be penalised for living together rather than on separate meters, or for spending more time at home, and why should they pay more than commercial users for the same amount of electricity? (4-Jan-2012)

CLP's small print: tariff rise is 8.4%, rebate is conditional
We look at the detail in CLP's 2012 tariff increase and the corresponding court case which HK Electric won. If CLP does not win its case, or if the amount of refund of Government rates and ground rent is smaller than expected, then the rebate will have to be clawed back in future tariffs. In any case, the rebate will be of limited duration as it relates to a lump sum. (4-Jan-2012)

HKICPA fines George Li Kwok Cheung Reasons
HKICPA, 19-Jan-2012
The unnamed listed company is Upbest Group Ltd (0335). In the separate Grand Field case Mr Li was jailed.

HKSAR v Lorrain Chung Yuet Sheung
HK Court of Appeal, 17-Jan-2012
The former controller of Great Honest Investment Company Ltd has her convictions quashed on appeal, due to misdirection of the jury.

Rogerio Lam Sou Fung v George Tan Soon Gin
HK Court of Appeal, 17-Jan-2012
The case of the Stemcup and the Double Gourd: Tan now owes Lam for damages and interest.

Retail investor Chan Wing Fai acquitted of market manipulation
SFC, 13-Jan-2012

Deutsche Bank MD & 4 investors charged with HK$24m bribery over trading of derivative warrants
ICAC, 12-Jan-2012
Mr Ma is a Responsible Officer of Deutsche Securities Asia Ltd.

Mimi Wong Kar Gee v Applied Development (0519) and her ex-husband
HK Court of Appeal, 12-Jan-2012

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